PRO FOOTBALL; 2 Former N.F.L. Players Sue Over Sharing of Fees

By ALAN SCHWARZ

Published: February 15, 2007

Two former N.F.L. players filed a class-action lawsuit late yesterday in federal court in San Francisco against Players Inc., the licensing subsidiary of the National Football League Players Association, claiming that Players Inc. has improperly represented more than 3,500 retired players and may owe them ''tens of millions of dollars'' in back licensing fees.

The suit, filed by the former players Bernie Parrish and Herb Adderley in United States District Court, asserts that Players Inc. has behaved as a representative for most former N.F.L. players while distributing little money from, or information regarding, agreements with licensees like video-game manufacturers and apparel companies.

Parrish and Adderley said they were suing in part to compel Players Inc. to provide full details of all agreements with and payments to the players. Parrish, a defensive back from 1959 to 1966 with the Cleveland Browns and the Houston Oilers, said that those details had been ''behind a veil of secrecy for years.'' The complaint includes a copy of an e-mail message from a Players Inc. officer that said $7 million was distributed in 2005 to 358 former players, or roughly 10 percent of the retirees Players Inc. says in its literature that it represents.

''They use the retired players to benefit themselves by promoting the retired players and not compensating them for it,'' said Adderley, a Hall of Fame defensive back from 1961 through 1972 for the Green Bay Packers and the Dallas Cowboys.

Adderley, 67, claims to have received no money from a 2003 agreement he signed with Players Inc. to license his name for a line of Reebok products, and that his letters and telephone calls over two years to inquire about this were not returned. He said that his experience was widespread among former players.

''I couldn't turn my back on 3,500 retired N.F.L. brothers who have been mistreated, abused, by the N.F.L. Players Association and Players Inc.,'' Adderley said.

A spokeswoman said last night that Players Inc. would not comment until it had time to review all of the information regarding the complaint, which was filed at 7 p.m.

According to a news release from Players Inc. last month, the organization, formed in 1994, handles $750 million in retail licensing business on behalf of all 1,800 current players as well as 3,500 retired players, generating more than $100 million in annual revenue. While no specifics were offered, it is common industry knowledge that the vast majority of the revenue derives from the use of the names and likenesses of active players.

On its Web site, Players Inc. describes itself as ''a fully integrated marketing company for active and retired N.F.L. players. These activities generate guaranteed royalties to Players Inc. and the players, in addition to providing financial support to the N.F.L.P.A.''

Ronald S. Katz, the players' lead lawyer, said that Players Inc.'s claim of representing 3,500 retired players in collective marketing ventures raised the question of why only 358 received payments during 2005. He said that dozens of requests by players over several years to receive more information were ignored by Players Inc. representatives.

''Players Inc. says that they represent these 3,500 people, and I don't think there's any doubt that they're generating large amounts of revenue,'' Katz said. ''It just cannot be true that 90 percent of our people do not deserve any money.''

Katz said that by law, Players Inc. must respond to the lawsuit within 20 days, but that extensions of 30 days or more were common. He said that the case would go to trial in about 18 months, before which players could see documents and interview potential witnesses that otherwise had been unavailable.

Nick Lowery, an N.F.L. place-kicker from 1978 to 1996, said yesterday that he had not been paid for his inclusion in video games and other Players Inc. licensing deals.

''Players Inc. has a very cavalier notion that it's their money, that it's a pool that they distribute as they see fit, and not something that is a sober, fiduciary responsibility to all players,'' Lowery said.

The class-action lawsuit comes as N.F.L. retirees have become increasingly vocal in their dissatisfaction with what they describe as unfairly low pension payments and hard-to-satisfy standards to receive disability benefits, which are overseen by the league and the players' association. Several members of the Pro Football Hall of Fame, including Mike Ditka and Deacon Jones, have boycotted the annual induction ceremony in Canton, Ohio, in protest.

Photo: Bernie Parrish, picking off a pass in 1966 while with the Houston Oilers, is suing over licensing fees. (Photo by Robert L. Smith/WireImage.com)